Friday, July 31, 2015

Week-Old Coffee

CANTON — Dunkin’ Donuts’ sales rose 2.9 percent at established US locations in the second quarter, the company said Thursday.

Parent company Dunkin’ Brands Group Inc. said the increase was the result of an uptick in customer traffic and higher average spending per visit, driven by sales of beverages.

For international units, the chain’s sales slipped 0.1 percent at established locations.

For the period ended June 27, the company said it earned $42.3 million.

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Also Thursday, Dunkin’ Donuts upbraided New York regulators over a plan to boost fast-food wages to $15 an hour, which the company said could lead to price increases. A wage board formed by Governor Andrew Cuomo arrived at the decision without involvement from the restaurant industry, Dunkin’ chief executive Nigel Travis said on a conference call.

“We’re deeply disappointed that the governor chose to skirt the legislative process by appointing a wage board, which did not even include a representative from our industry,” he said. “Our franchisees, and in fact other company’s franchisees, were denied the chance to fairly express their concerns.”

The company’s main rival in much of the United States, Starbucks, also released sales figures Thursday. The Seattle-based firm said quarterly sales jumped 8 percent at established locations in its flagship Americas market, driven by an uptick in customer visits and higher average spending per visit.

The coffee chain has been pushing up sales with offerings such as S'more Frappuccinos and Flat White espresso drinks that cost a little more. Chief financial officer Scott Maw said in a phone interview that people are even ‘‘trading up’’ to newer, pricier breakfast sandwiches, such as one that is served on a croissant bun. Maw noted that more people are getting food orders.

On a global basis, the company said the figure rose 7 percent. That also included an 11 percent increase in Asia and a 3 percent increase in the segment encompassing Europe, the Middle East, and Africa.

"Pearson sells Financial Times to Nikkei as part of $1.3 billion deal" by Sylvia Hui Associated Press July 23, 2015

LONDON— Japanese media company Nikkei Inc. is buying the Financial Times as part of a $1.3 billion deal with Britain’s Pearson PLC, the companies revealed Thursday.

The deal is part of Nikkei’s strategy to boost its global reach and also allows Pearson to concentrate on its core global education business.

John Fallon, chief executive of Pearson, said the company has been a proud proprietor of the Financial Times for nearly 60 years but the rapidly changing media landscape meant it’s time for the salmon-colored business daily to change hands.

‘‘We’ve reached an inflection point in media, driven by the explosive growth of mobile and social,’’ he said in a statement. ‘‘In this new environment, the best way to ensure the FT’s journalistic and commercial success is for it to be part of a global, digital news company.’’

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The sale of the Financial Times has been rumored for some time but the identity of its potential buyer proved something of a surprise. The paper has always been British-owned.

‘‘Nikkei had not been viewed as one of the primary contenders,’’ said Chris Beauchamp, senior market analyst at IG.

It’s a bold move for Nikkei, the largest independent business media group in Asia. Its core business is newspaper publishing, and its flagship paper, The Nikkei, has about 3 million subscribers.

The deal would be one of the largest-ever acquisitions by a Japanese media company, according to Nikkei Asian Review, one of the company’s outlets.

‘‘By sharing personnel, knowledge, and their long histories, the companies aim to become an unprecedented global economic media player,’’ the Nikkei Asian Review said.

Digital business news will continue to be a main focus for the FT under Nikkei, the report added. Digital subscription now accounts for 70 percent of the paper’s total circulation base.

The FT and Nikkei have a combined digital subscription of almost 1 million.

Pearson, a leading international education products and services company, acquired the Financial Times in 1957. Fallon, its chief executive, said Thursday that the FT should now switch to a company completely focused on news in order to build on its brand and influence.

John Ridding, chief executive of the FT, agreed, adding the deal’s editorial impact was something managers had thought ‘‘long and hard and carefully about.’’

Ridding said he was confident Nikkei ‘‘really walk the talk of editorial independence.’’

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Nikkei, founded in 1876, also publishes books, magazines and digital media and offers database and broadcasting services. In 2013 the company re-launched its English-language outlet, Nikkei Asian Review, online and in print as part of a strategy to expand its coverage from Japan to throughout Asia....

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